http://mtm2.com/~mtmg/Traxx/textures/animate.html>>The first texture will remain un-numbered, and <u>it is this first one that you must paint into the terrain</u> in order for the animation to work correctly. Do not paste the other textures. Note that the texture will not be animated on the main Traxx display, but it will work fine when you launch your track in MTM2.
You have to keep track of the first texture in the animation. That's the one that controls the others. Put that one on the ground and viola.
Hope that helps.